Question

Mark invests $1500 in an account that pays 5.7% interest compounded continuously. Assuming no deposits or withdrawals are made, how much money will be in the account after 10 years?​

Answer 1

$2,611.21

Explanation:

A = P(1 + r/n)^nt

A = 1500(1 + 0.057/1)¹⁰

A = 1500(1.057)¹⁰

A = 1500(1.740803988528..)

A = 2611.205982792..

A ≈ $2,611.21

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Where A is the total amount including interest, P is the initial amount or principle, r is the rate, n is how many times it is compounded per year, and t is the time in years.